The Securities and Exchange Commission (SEC) staff no-action letter clears the regulatory way for avatar social platform IMVU to launch its VCOIN digital asset. The Nov 17 letter emphasizese that the SEC based the decision on IMVU’s operational and governance features.
KYC/AML details in focus
The SEC paid attention to the fact that IMVU is incorporating Know Your Customer and Anti-Money Laundering (KYC/AML) measures upon wallet opening, and with confirmations further on. The company will not use proceeds from VCOIN for bootstrapping purposes. Furthermore, IMVU will not support third-party sales or listings, and will maintain supply in order to keep VCOIN at a fixed price. Users will also need to affirm that the coins are for consumption, and not speculation.
At the same time, IMVU states in its press release that VCOIN enables users to “hold, earn, convert to real value off-platform” in a way that is not possible in-game. Moreover, users do not have to undergo KYC to handle VCOIN when on IMVU’s platform. IMVU checks identity only when transferring VCOIN off-platform.
“Users of IMVU, and really all virtual and game users, want to be able to earn real value for the services and goods they offer, and VCOIN will be the first to provide this,” according to IMVU Chief Strategy Officer John Burris.
VCOIN is built to the ERC-20 standard. The release of VCOIN is currently slated for January 2021.
Just how big is it?
The IMVU platform contains over 400,000 destinations used by seven million monthly users, with an in-game economy that already sees 27 million transactions per month. IMVU’s digital asset catalog contains over 50 million items. According to IMVU, the catalog is growing by over 400,000 digital items per month with over 50,000 creators. In all, over 200,000 people already earn money from these items, including virtual fashion, furniture, and rooms.